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HR/Payroll Modernization
PSO BoardMay 21, 2013
2Professional Staff Organization Board Meeting
Agenda
• Project Overview• Timeline• Efforts This Year
o Procurement / System Selectiono Business Process Redesign
• Next Steps• University Involvement
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The HR/Payroll Modernization
• Replace the existing payroll system
• Implement a modern HR system• Move to standard HR and payroll
processes and practices
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It Happened in 1982…
• E.T. made movie history• Michael Jackson released “Thriller”• USA Today was first published• The Epcot theme park at Walt
Disney World opened to the public• The Weather Channel went live• The Commodore 64 was released • UW’s HEPPS system was launched
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1982 2012
Annual Revenue $552 million $4.6 billion
Primary Revenue Sources
State appropriation 28% 6%
Tuition and fees 13% 13%
Research grants and contracts 27% 30%
Patient care 14% 29%
Human Resources
Number of employees 20,000 40,000
Unionized staff 7,000 17,000
UW: Now & Then
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1982 2012
Regulatory and Compliance Profile
Scope of bargaining agreements
Prohibited from negotiating salary, hours of work, overtime, premium pays, leave, corrective
action, performance management
Civil Service Reform opened the scope of bargaining to include all
of these areas
Geographic compliance scope
3 statesN/A
29 states66 countries
Federal, state, and hospital requirements and regulations
HEPPS was implemented to be compliant for the time, but lacks
the flexibility to keep up with change
30+ major federal regulatory programs and requirements,
numerous changes to state and hospital rules & regulations,
including: ADA, FMLA, COBRA, FLSA for state employers, new state retirement and insurance
eligibility rules, extension of bargaining rights to temporary
employees, new Joint Commission rules, etc.
UW’s Compliance Profile has Changed
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Examples of Issues Facing UW
• Writes off ~$200,000 annually in unrecovered wages
• Can’t determine productivity vs. non-productivity hours
• Multiple systems are used to gather time & leave
• New employees experience productivity delays waiting for manual processing of access/permissions
• Inability to effectively track required training
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HR/P Modernization Benefits
• Improved levels of service• Accurate, timely employee data• Bandwidth to focus on strategic
initiatives• Improved competitiveness• Reduced operational risk• Productivity savings
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This Impacts You• All employee information in one place• Provides updated data in real-time• Eliminates 68% of redundant processing steps
now required to record time, process payroll, and update leave records
• Automates open enrollment for benefits • Allows online information submissions, such as
for life changes (marriage, divorce, children)• Tracks mandatory trainings and
renewal/expiration of required certifications• Provides online career planning• Automates approval processes
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TIMELINE
11Professional Staff Organization Board Meeting
Timeline: April 2013 – January 2014
Apr-Jun 2013 Jul-Sep 2013 Oct 2013 -Jan 2014
Stage 3 – System Demos, Cost Proposals & Contract
Issues
Stage 4 –Demos, Revised Costs, IPS, Contract
Negotiations
Announce Finalists July 2013
Vendor Signs ContractOctober 2013
Secure Contact Approval from State & BOR
Contract Fully Executed
January 2014
Procurement
Business Process Redesign
Redesign Processes
Build Roadmap
Communications
Develop & Execute on Implementation Plans
We are here
BenchmarkingData Collection,
Validation & ReviewResultsPlan
Execute Communications Plan
Project Phase
Workshops Complete 5/13/2013
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Improve Integration Design
Selection & IPS
Fit/Gap
Production Support
FY13 FY14 FY15 FY16 FY17 FY18
Contract Signed
Jan 2014
RFP ReleasedSept 2012
Redesign Process
Plan/Kick-Off
Design
Configure & Build
Unit, System, Integration, &
Regression Testing
Parallel Processing
Cutover
Stabilization & Optimization
Training & Outreach (Phased)
Design & Implementation (Phased)Estimate 3-5 Years
Procurement
Business Process Redesign
Project Phase
Develop & Execute Implementation Plans
Timeline: 2013 - 2018
Communications
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PROCUREMENT
Vendor / System Selection
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What We’re Seeking
• Off-the-shelf software product• Hosted or fully managed solution
(SaaS)• Use a non-customizable system• Solution that scales to UW’s complex
needs
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The System Must Support…
• 40,000 staff and faculty• 11,000 medical center employees• 300+ employees in 26 other countries• 4,400 graduate students with health
benefits• 365+ earning types (regular, hourly,
etc.)• 165+ unique pay differentials or
premiums• 2,000 retirees• 9 unions representing 16,000+
employees5/21/2013
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Current State of Information Flow
Compensation
PayrollOWLSTimesheetEmail Access
DevelopmentPerformanceManagement
SuccessionPlanningNo system
LaborRelations
Benefits
Hiring & Onboarding
Separation
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Future State with New System
Compensation
Payroll
DevelopmentPerformanceManagement
SuccessionPlanning
LaborRelations
Benefits
WorkforceManagement
Hiring & Onboarding
Separation
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A Four-Stage Selection Process
Stage 1• 6 bids submitted in October 2012• 5 invited to submit more detailed proposals
Stage 2
• 4 detailed proposals received on January 2013
• 1 bidder disqualified due to an incomplete response
Stage 3
• In March 2013, 3 vendors invited to provide solution demos, submit initial cost proposals, and negotiate contract terms
• 1 bidder withdrew due to licensing and contracting issues with a sub-bidder
Stage 4
• 2 vendors will provide campus demonstrations in August 2013 and submit revised cost proposals
• 1 final vendor announced in October 2013
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BUSINESS PROCESS REDESIGN
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What is Business Process Redesign?
• Started with industry best practices• Obtained input from UW
representatives• Designed “future-state” processes
Process Leads Modify Process
Flow(1- 4 people)
Focus Group Modify Process
Flow(5 – 13 people)
Workshop To Review Process
Flow(20 – 40 people)
Best Practice Process Inputs
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BPR WorkshopsWorkshops by Process Area Workshops by Process Area
Benefits Administration Time Collecting & Time Keeping
Compensation Strategy & Planning Training & Development
Disability Accommodation Violence Prevention
Hazards & Incidents Workforce Management
Leave Administration
Off-Cycle Payroll Processing
On-Cycle Payroll Processing Workshops Held Closer to Implementation
Ongoing & Year-End Payroll Processing HR Communications
Performance Management Labor Relations
Separations Organization & Position Management
Talent Acquisition Succession Planning
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NEXT STEPS & UNIVERSITY INVOLVEMENT
23Professional Staff Organization Board Meeting
Next Steps
• Finalizing a detailed plan – or “roadmap”
o Scopeo Prioritizeo Sequence
• Initial projects from BPR begin this month
• Open system demos for 2 finalists in August
• Seeking Board of Regents and State approval by January 2014
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Participation to Date
• More than 300 people involved in BPR• 75 subject matter experts &
technical / functional advisors for Procurement
• 50 units involved in Benchmarking• 15 Campus Advisory Group Members
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Opportunities for Involvement
Selection & IPS
Fit/Gap
FY13 FY14 FY15 FY16 FY17 FY18
Contract Signed
Jan 2014
RFP ReleasedSept 2012
Redesign Process
Plan/Kick-Off
Design
Configure & Build
Unit, System, Integration, &
Regression Testing
Parallel Processing
Cutover
Stabilization & Optimization
Design & Implementation (Phased)Estimate 3-5 Years
Procurement
Business Process Redesign
Project Phase
Develop & Execute Implementation Plans
= provide input into process redesign
= view system demos (Stage 4, August 2013)
= participate in design sessions or testing
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